REUTERS GROUP PLC ANNUAL REPORT AND ACCOUNTS 1999

38. Adjustments to shareholders’ equity1999 1998 1997£M £M £MCapital employed before minority interest in accordance with UK GAAP 601 372 1,661US GAAP adjustments:Software revenue recognition – (2) –Goodwill and other acquisition accounting adjustments 43 14 11Capitalised software development costs net of amortisation 4 6 8Fixed asset investments 567 42 14Shares held by employee share ownership trusts (95) (45) (39)Liabilities (42) (28) (25)Deferred taxes (123) (10) (16)Dividends not formally declared or paid during the year 154 155 140Shareholders’ equity in accordance with US GAAP 1,109 504 1,75439. Statement of comprehensive income1999 1998 1997£M £M £MNet income in accordance with US GAAP 451 392 386Other comprehensive income, net of tax:Unrealised gains on certain fixed asset investments:Arising during year 425 37 8Less gains in net income (10) (19) –Foreign currency translation differences 10 (1) 2Comprehensive income in accordance with US GAAP 876 409 39640. Summarised balance sheet (US GAAP basis)1999 1998 1997£M £M £MAssetsFixed tangible assets 1,495 859 858Current assets 1,401 1,565 1,809Other assets 46 42 58Software development costs 4 6 8Goodwill and other intangibles 227 250 174Total assets 3,173 2,722 2,907Liabilities and shareholders’ equityCurrent liabilities 1,556 2,102 1,017Long-term liabilities 362 75 86Deferred taxes 146 24 32Minority interest – 17 18Shareholders’ equity before deductions 1,236 562 1,889Treasury stock – – (82)Shares held by employee share ownership trusts (127) (58) (53)Total shareholders’ equity 1,109 504 1,754Total liabilities and shareholders’ equity 3,173 2,722 2,907Goodwill and other intangibles are net of accumulated amortisation of £434 million (1998 – £375 million, 1997 – £322 million). Software development costs arenet of accumulated amortisation of £14 million (1998 – £12 million, 1997 – £11 million).Reuters Group PLC Annual Report 1999 77